Category: Miscellaneous

*Income tax* Madras HC *HC slam AO for denying Sec. 80P deduction on interest income without considering assessee’s arguments*

*Income tax* Karnataka HC *Bank office work from legal dept. of software companies classified as data processing for Sec. 10A exemption*

*Income tax* SC *SC dismissed SLP against ruling that reassessment notice couldn’t be issued by AO who had no jurisdiction*

*Income tax* Karnataka HC *No sec. 194C TDS if Co. has control over advertisement space with exclusive rights either to retain it or resell it*

*Income tax* Madras HC *Income arising to Co. by reversing entries of stock option given to employees eligible for Sec. 10A/10B exemption*

*Income tax* SC *SLP granted against ruling that proviso to Sec. 194A(1) is restricted to individual/HUF having specified turnover*

*Income tax* Madras HC *Medallion is also classified as pendant; Sec. 10AA exemption could not be denied to jewellery manufacture*

*Income tax* Karnataka HC *Loss from investment made in subsidiary for enhancement of business activities in global market is allowable*

*Income tax* Karnataka HC *Sec. 80-IB restricting usage for a commercial purpose applicable block-wise if every block has separate approval*

*Income tax* MOF Press Release 29 Oct 2020 *FinMin extends LTC Cash voucher scheme to non-Central Government employees*

*Income tax* Punjab & Haryana HC *No additions based on seizure of loosed sheet where no unaccounted cash was found to be paid by buyer*

*International taxation* Gujarat HC *Commission paid to non-resident agents not having any PE in India not taxable in India*

*International taxation* Delhi – Trib. *Sum received from British Airways for use of Reservation System not taxable as royalty in lack of provision in DTAA*

*International taxation* Karnataka HC *Paragraph substituted in a tax treaty is applicable for entire fiscal year & not from date of its notification*

*International taxation* Delhi – Trib. *AMP exp. couldn’t be treated as international transaction merely because a notional indirect benefit arose to AE*

*GST* AAR – TELANGANA *Food supplied to Govt. / Pvt. Hospitals on outsourcing basis is chargeable @ 5% GST: Telangana AAR*

*GST* Delhi HC *DL HC directed competent authority to decide w.r.t. release of IGST amt. & duty drawback due to petitioner as per law*

*GST* Gujarat HC *Levy of license fees under GPMC Act for advertising hoardings in pvt. properties is constitutionally valid: Guj. HC*

*GST* AAR – TAMILNADU *Soft beverages/aerated water supplied by restaurant located in a hotel attracts 18% GST: TN AAR*

*Custom* *CBIC releases guidebook for ‘Faceless Assessment’ under Customs*

*GST* *Action required to be taken by CGST Commissionerates w.r.t. adverse orders of High Courts: Instructions*

*GST* Madras HC *ITC cannot be disallowed to purchaser if seller has collected tax but not paid to Govt.*

*ARBITRATION ACT* Jharkhand HC *An award couldn’t be set aside merely on ground of non-existence of arbitration clause in agreement : HC*

*Income tax* Pune – Trib. *Provision of sec. 139(5) allowing revision of belated ITR not applicable with retrospective effect*

*Income tax* CBDT Notification dated 28 Oct 2020 *CBDT notifies Equalisation levy (Amendment) Rules, 2020; revises Forms for filing statement & appeals*

*Income tax* SC *Mere non acceptance of assessee’s stand by AO wouldn’t permit revenue to levy penalty; SLP dismissed*

*Income tax* Karnataka HC *Loss of 100% export oriented units can be set off against profit of other units under same head*

*Income tax* SC *Conversion of survey into search & seizure without recording any recording satisfaction is bad in law; SLP dismissed*

*Income tax* Circular No. 18 I 2020 dated 28th Oct 2020 *Limitation period of 15 days to pay amount under Vivad se Vishwas not applicable: CBDT*

*Income tax* Madras HC *No. Sec. 263 revision if no material was produced to support finding that assessee was used as device to divert profit*

*Income tax* Bangalore – Trib. *Exp. incurred on a project which was never put to use & subsequently abandoned to be treated as revenue in nature*

*Income tax* MOF Notification dated 27th Oct 2020 *Govt. extends the due-date for payment under Vivad Se Vishwas Scheme (without any additional charges) to 31-03-2021*

*International taxation* Delhi – Trib. *TP additions towards AMP(Advertisement, Marketing and Promotion) exp. to be restricted to extent reimbursement was received under AMP agreement*

*FEMA* FDI-PolicyCircular-2020-29 October 2020 *Ministry of Commerce & Industry issues Consolidated FDI Policy, 2020*

*GST* Gujarat HC *Notification denying rebate claim to importer of goods under AA licenses is not ultra vires of the CGST Act: Guj HC*

*GST* AAR – TAMILNADU *Services of testing of chemicals on fresh table grapes are taxable under GST: TN AAR*

*GST* AAR – TAMILNADU *Supply of printed trade advertising material, where content is provided by the recipient is composite supply: TN AAR*

*GST* CBIC No. 80 /2020 – Central Tax dated 28 Oct 2020 *Due to file GSTR-9 & GSTR-9C for F.Y. 2018-19 further extended to 31 December, 2020: Notification*

*GST* Gauhati HC *Petitioner entitled to avail benefit of Sabka Vishwas Scheme even if penalty amt. is not mentioned in Form SVLRS-1*

Frequently Asked Questions on Manufacture and Other Operations in Customs Warehouse Dated 27th Oct 2020 *CBIC released FAQs on Manufacture & Other Operations in Customs Warehouse*

*GST* AAR – KARNATAKA *Pure consultancy services provided to local bodies & state govt. dept. as per Article 243W of COI are exempt from GST*

*GST* Notification dated 23 Oct 2020 *J&K extends time limit to file claims under budgetary support scheme to 31-12-20: Notification*

*GST* Kerala HC *Assessment order to be withdrawn, where returns are filed within 30 days from receipt of assessment order*

*Income tax* Bombay HC *Bombay HC denied condonation of delay of 3389 days in filing appeal before ITAT in absence of strong reasons*

*Income tax* Madras HC *ITAT could have condoned delay where affidavit explaining reason for delay was annexed therein; matter remanded*

*Income tax* Madras HC *Approval u/s 10(17A) doesn’t connote a paper conveying approval and bearing stamp & seal of CG*

*Income tax* Delhi – Trib. *Trust registration to be denied only in case assessee failed to fulfil requirements mentioned in Sec. 12AA*

*Income tax* Bangalore – Trib. *ITAT remanded matter to examine additional evidence filed by assessee to substantiate her claim of sec. 54 exemption*

*Income tax* CBDT Press Release 22 Oct 2020 *Tax Dept. conducts search action on Srinagar based group; undisclosed transaction of Rs. 105 crore unearth*

*Income tax* Calcutta HC *CIT isn’t empowered to verify genuineness of trust activities while granting Sec. 12AA registration*

*Income tax* MOF Press Release dated 24 Oct 2020 *CBDT extends due date for furnishing of Tax Audit Report & ITR for AY 2020-21*

*Income tax* CBDT *CBDT releases instructions for filing of ITR Forms for AY 2020-21*

*Income tax* CBDT Notification dated 22 Oct 2020 *CBDT reduces minimum rating from AA to A for the funds eligible for making investment by PF*

*Income tax* *Taxmann and AIFTP publish FAQS and Survey results on Faceless Assessment Scheme*

*Income tax* Bangalore – Trib. Interest on borrowing could not be included in cost of inventory: ITAT

*Income tax* Ahmedabad – Trib. *Accumulation of 15% of income u/s 11 couldn’t be regarded as obligation envisaged in law*

*Income tax* Bombay HC *HC issued notice to Additional Solicitor General as constitutional validity of e-filing of ITR is challenged*

*Income tax* Jaipur – Trib. *SDV or FMV of flat is to be considered on date of booking of flat if same was acknowledged in sale agreement*

*Income tax* Bangalore – Trib. *No section 40A(9) disallowance if amount paid was for welfare of employees : ITAT*

*Income tax* Madras HC *No infirmity in ITAT’s order allowing assessee to cross-examine person : Madras HC*

*Income tax* Jaipur – Trib. *Sec. 69B addition to be quashed if it was made on finding of Excise Dept. which was later set aside by CESTAT*

*International taxation* Delhi – Trib. *Rate of DDT should not exceed rate specified in Article 10 in India-Germany DTAA: ITAT*

*GST* AAR – TAMILNADU *Conducting seminars, meetings, etc. by IIT Alumni for its members in lieu of membership fee is a ‘supply’ under GST*

*GST* AAR – TAMILNADU *Prop. ITC available on goods/services used in installation of Renewable Power Generation Plant under ‘REC Scheme’*

*GST* AAR – KARNATAKA *No ITC on medicines used in supply of healthcare services provided to patients admitted in hospital: Kar. AAR*

*GST* AAR – TAMILNADU *Pre-mix popcorn maize packed with edible oil & salt is classified under tariff item 20081990, attracts 12% GST*

*GST* AAR – TAMILNADU *Payment made for credit card expenses to foreign holding Co. is a service, liable to 18% GST under reverse charge*

*GST* AAR – TAMILNADU *Application for Advance Ruling rejected where applicant is recipient & not supplier of services: TN AAR*

*GST* CBIC Press Release dated 24 Oct 2020 *CBIC extended due date to file GSTR-9 and GSTR-9C to 31st Dec, 2020*

*GST* AAR – KARNATAKA *Activities undertaken by branch office in India for promoting business of foreign head office is a supply under GST*

*GST* AAR – TAMILNADU *Act of agreeing to grant easement rights of pathway is a service of agreeing to tolerate an act, taxed @18% GST*

*GST* AAR – TAMILNADU *Activity of building vehicle body on truck chassis of customer is a supply of service, attracts 18% GST: TN AAR*

*GST* Orissa HC *Reimbursement of differential tax amt. from VAT to GST w.r.t works contract to be represented before app. Authority*

*GST* AAR – KARNATAKA *Supply of ‘Kharif Arhar’ & ‘Green Gram’ to NAFED is exempt from GST: Karnataka AAR*

*GST* AAR – WEST BENGAL *Installation of oil pipeline o/s India is works contract chargeable @18% GST, do not qualify exports: WB AAR*

*GST* Notification 07/2020 dated 21 Oct 2020 *Govt. exempts duties of Central Excise against scrips issued under RoSL scheme for apparel & made-ups sectors*

*Company Law* MCA General Circular 36/2020 dated 20 Oct 2020 *MCA extends minimum residency criteria relaxations for directors for F.Y. 2020-21 amid COVID-19 outbreak*

*SEBI* Karnataka HC *Mutual fund Co. deciding to wind up Mutual fund schemes should obtain consent of unit-holders*

*Company Law* “Delhi HC”*Plaintiff’s claim of beneficial interest in co. was unsustainable as he failed to submit any proof*

*SEBI* *SEBI issues clarification on applicability of Corporate Governance norms w.r.t. foreign subsidiary of a listed entity*

Supreme Court Weekly Round Up (19th Oct 2020 to 24th Oct 2020)

===================

1 BJP Leader Moves Supreme Court Challenging Madhya Pradesh High Court Order Restraining Physical Poll Campaigns [Pradyumn Singh Tomar V. UOI]

2 Election Commission Challenges Madhya Pradesh High Court Order Restraining Physical Poll Campaigns In Supreme Court [Election Commission of India V. UOI] https://www.youtube.com/channel/UCtgyAk11-4JfHh1mHDyZ5bg?view_as=subscriber

3 [Loan Moratorium] Scheme Of Waiver Of ‘Interest On Interest’ For Eligible Borrowers Will Be Implemented By Nov.5: Centre Tells Supreme Court [Gajendra Sharma V. UOI]

4 Nanded gurudwara Dusshera procession: SC Directs Maharashtra SDMC To Take A Decision [The Nanded Sikh Gurudwara Sachkhand Shri Hazur Abchalanagar Sahib board V. UOI]
https://www.youtube.com/channel/UCtgyAk11-4JfHh1mHDyZ5bg?view_as=subscriber
5 SC Stays Orissa HC’s Ban On Bird/Animal Sacrifice During ‘Chatar Yatra’ [Bhawani Shankar Nial V. Jayanti Devi & Ors.]

6 Delay Of More Than 1 Year In Uploading Of Judgment After Pronouncement: SC Calls Upon Patna HC Registrar General To Explain [State of Bihar V. Raj Kumar Yadav]

7 Can Consumer Fora Entertain Complaints Against Universities & Educational Institutions? SC To Examine [Manu Solanki & Ors. V. Vinayaka Mission]

8 Vacancies And 36,600 Cases”: Petitioner Moves SC Seeking Urgent Hearing Of Plea For Timely And Transparent Appointments In CIC [Anjali Bhardwaj V. UOI]

9 “Different Ages For Marriage Of Men & Women Perpetuate Gender Stereotypes”: Plea In SC Seeks Uniform Age Of Marriage & Transfer of Similar Pleas From HC [Ashwani Kumar Upadhyay V. UOI] https://www.youtube.com/channel/UCtgyAk11-4JfHh1mHDyZ5bg?view_as=subscriber

10 [Life Insurance] Proposer Duty Bound To Disclose Pre-Existing Ailments To The Insurer: SC [Branch Manager, Bajaj Allianz Life Insurance Company Ltd. vs. Dalbir Kaur]

11 Faridkot Royal Dispute: SC Allows Caretaker Trust To Operate Bank Accounts Towards Hospital, Other Philanthropic Causes

Regards,

Rajesh Shrivastava
Birendra Mishra
(RSBK JURIS)

*Income tax* Madras HC *Interest received in advance on discounting of bills against LC is taxable on accrual basis: Madras HC*

*Income tax* Kolkata – Trib. *Accumulation of Income upto 15% is to be allowed on gross receipts without deducting any exp.*

*Income tax* Madras HC *ITAT erred in dismissing appeal on account of low tax effect as assessee’s case fall within exception : Madras HC*

*Income tax* CBDT Order dated 19th Oct 2020 *CBDT issues directions for exercising power of survey u/s 133A by the Income-tax authority*

*Income tax* Karnataka HC *TPAs are liable to deduct TDS u/s 194J while making payment to hospitals on behalf of insurance Co.*

*Income tax* Patna HC *STT deducted but not paid couldn’t be allowed as deduction by virtue of section 43B*

*International taxation* Delhi – Trib. *Explanation 7 to Sec. 9 has retro effect it if was inserted in furtherance of object of insertion of Explanation 5*

*Transfer Pricing* Madras HC *ITAT to decide issue of appropriateness of method for TP adjustments considering multiplicity of litigation : HC*

*GST* Rajasthan HC *Online Fantasy Sports game is a ‘game of skill’ and not betting & gambling: Raj. HC*

*GST* Bombay HC *Writ filed for extension of time limit to file GSTR-9 & 9C till 31-12-2020, matter to be heard on 27-10-2020: Bom. HC*

*GST* Madhya Pradesh HC *GST Authorities have power to seize cash from assessee under section 67(2) of the CGST Act : MP HC*

*GST* CBEC F. No. 116 /22/2020-CX-3 dated 19 Oct 2020 *CBIC prescribes procedure for referring technical/legal issues under the Central Excise & Service Tax*

News Desk on Income Tax, GST & Corporate Laws 20 Oct 2020

*Income tax* Bangalore – Trib.) *AO cannot adopt NAV method to determine value of shares of a company if assessee used DCF method for the same*

*Income tax* Madras HC *HC dismissed writ as assessee had alternative remedy of filing appeal before ITAT*

*Income tax* Bangalore – Trib. *Dep. on admission fees and processing charges paid towards membership of stock exchange is allowable: ITAT*

*Income tax* Madras HC *No disallowance of interest paid on loans taken from relatives if they duly disclosed interest income in their ITR*

*Income tax* Madras HC *Madras HC remanded matter as ITAT didn’t adjudicate issue of assumption of jurisdiction by AO u/s 147*

*Income tax* Delhi HC *Discretionary hearing opportunity under ‘Faceless Appeal Scheme’ challenged before Delhi HC*

*Income tax* *CBDT order dated 16 Oct 2020* *CBDT issues guidelines for taking intrusive & coercive actions for recovery of taxes by AO/TRO*

*Transfer Pricing* MOF Notification dated 19th Oct 2020 *CBDT notifies tolerance limit under transfer pricing for AY 2020-21*

*Transfer Pricing* Bangalore – Trib *Negative working capital adjustment for TP study not required in case captive service provider*

*GST* AAR – MAHARASHTRA *Sale of ready-to-use sand to Foundry Industry constitutes as ‘supply of goods’: AAR MH.*

*GST* AAAR-Haryana *Ruling by AAR no more binding on applicant due to change in tax rate of Solar Power Generating System: AAAR Har.*

*GST* Kerala HC *No withdrawal of assessment order where returns are filed after 30 days from date of service of the said order : KL HC*

*GST* Kerala HC *Audit is independent of investigation, audit & investigation proceedings to be continued Simultaneously in GST*

*GST* AAAR-KARNATAKA *‘Access cards’ printed based on contents given by customers are ‘goods’ under tariff item 49011020, taxed @ 5% GST*

*GST* Madras HC *Credit of EC, SHEC & KKC cannot be carried forward under GST regime, judgment of single judge set aside: Mad. HC*

*GST* No. 05/2020-Central Tax (Rate) dated 16 Oct 2020 *Satellite launch services exempted from GST: Notification*

*Company Law* Calcutta HC *HC upholds RoC’s decision to include director in defaulters’ list; refers division bench for conflicting views*

GST Portal updates

16/10/2020

Government of India, vide Notification No. 29/2020 – Central Tax, dated 23rd March, 2020, had staggered filing of Form GSTR-3B, for the tax periods of April to September, 2020.

The due dates for filing of GSTR-3B returns for tax period of September, 2020, are as given below:

Sl. No	Taxpayers with aggregate turn over (PAN based) in the previous financial year	And Taxpayers having principal place of business in the State/ UT of	Due date of filing of Form GSTR 3B, for September, 2020
1	More than Rs 5 Crore	All States and UTs	20th October, 2020
2	Upto Rs 5 Crore	State of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep	22nd October, 2020
3	Upto Rs 5 Crore	State of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi	24th October, 2020

This is for information and necessary action please.
Thanking You,
Team GSTNVIEW ALL

Income tax MOF Notification dated 29 July 2020 *CBDT further extends due date for filing of ITR for AY 2019-20 till 30-09-2020*

Income tax Ahmedabad – ITAT *Losses already set off against profit other business not to be reduced notionally while computing profit u/s 80-IA

* Income tax Madras HC *Notice issued to authorised representative of assessee is deemed as notice issued to assessee*

Income tax MOF Notification dated 28 July 2020 *CBDT amends Forms for furnishing statement of income paid/credited by investment fund to its unit holder*

Income tax Kolkata – Trib. *An omitted provision is to be treated as never existed in law; ITAT quashed revisional proceedings*

International Taxation “THE MULTILATERAL CONVENTION TO IMPLEMENT TAX TREATY RELATED MEASURES TO PREVENT BASE EROSION AND PROFIT SHIFTING (MLI)” *CBDT releases MLI synthesised text for India- Czechia Republic & India-Rusia tax treaties

FEMA https://flair.rbi.org.in/fla/ The site is facing technical difficulties.The due date for submission of FLA for the year 2019-20 is extended to August 14, 2020.

GST AAR – ANDHRA PRADESH *Supply of printed flex material is supply of goods, classified under heading 4911, attracts 12% GST

GST AAR – ANDHRA PRADESH *HSD Oil received from recipient for free for equipments/vehicles used for mining, forms part of value of mining*

GST AAR – ANDHRA PRADESH *Vessel charter hire charges are classified under heading 9966, taxed @ 5% GST: AP AAR*

Company Law Kerala HC *Petitioner to approach RoC for activation of DIN and DSC for filing of STK-2 to enable strike off of name of Co.*

SEBI SEBI CIRCULAR 29th July 2020 *Timelines for compliance with regulatory requirements by Trading members and RTAs extended:

SEBI* SEBI SEBI CIRCULAR 29th July 2020 *SEBI extends timeline for submission of financial results to September 15, 2020*

SEBI SEBI CIRCULAR 29th July 2020 *Mechanism with regard to Margin obligations by of pledge to be implemented from August 01, 2020*

IBC NCLT – New Delhi *Amount claimed to be transferred to corporate debtor couldn’t be termed as ‘financial debt’ without any evidence*

IBC NCLT- Chennai *Liquidator rightly rejected claim of operational creditor as it was not crystallised in an agreement between parties*

IBC NCL-AT *Resolution can be taken even during CIRP if any promoter agrees to invest money for keeping Co. as a going concern*

IBC NCLT – Ahd. *CIRP plea admitted as documents produced by operational creditor clearly established debt and default*

IBC IBBI *CPIO-IBBI wasn’t under obligation to express any opinion or provide info. already available in public domain*

IBC NCLT – Ahd. *Co. was to be dissolved when shareholders agreed to close down due to non-availability of business prospects*

IBC Delhi HC *Non-IPE firms appointed as RP by CoC was permitted to continue assignment till next date of hearing* Others GOI Press Release 29 July 2020 “*Cabinet Approves National Education Policy 2020, paving way for transformational reforms in school and higher education systems in the country*

*Business profits* (Article 7)   *OECD MC/ UN MC* :   BPs of an Enterprise can only be taxed by the *Residence State (RS)*. Right of Source State (SS) to tax BPs of an enterprise only exists if a PE exists in its jurisdiction In *OECD MC*-Once a PE is proven the SS can tax only such profits as are attributable to the PE In *UN MC*-     The attribution principle is amplified by a limited *FORCE OF ATTRACTION RULE (FOA)* The FOA rule implies that when a foreign enterprise sets up a PE in SS, it brings itself within the fiscal jurisdiction of that State to such a degree that profits that the Enterprise derives therefrom, whether through the PE or not can be taxed by it (i.e., the SS) Accordingly, if the Enterprise carries on business in the other CS through a PE, the profits of the Enterprise may be taxed in the other CS but only so much of them as is attributable to: That PE;Sales in other CS of goods or merchandise of the same or similar kind as those sold through that PE; orOther business activities carried on in that other State of the same or similar kind as those effected through that PE   Series continue……   For daily updates, you may join: 1. FEMA & International taxation https://chat.whatsapp.com/J3O8lXBnYzdLnWmql7cBVG 2 *YouTube Link https://www.youtube.com/channel/UCtgyAk11-4JfHh1mHDyZ5bg  3. Telegram Channel Link t.me/FEMAANDINTERNATIONALTAXATION